- Cardano price expected to recover to $0.300
- Closest support level lies at $0.250.
- ADA may face resistance in closing above the $0.300 level
Cardano (ADA) price has fallen below the $0.300 level as the bears dominated the markets with strong selling activity taking place. The price has observed a 15.81 percent decline to the $0.2538 mark, where it currently hovers.
The broader cryptocurrency market sentiment is also bearish as most major cryptocurrencies recorded double-digit losses across the last 24 hours. These include Bitcoin that observed a 13 percent decline falling below the $33,000 level.
Cardano price overview: Cardano price across the last ten days
After starting the year with little to no volatility, ADA seems to have observed its share of volatility in the first ten days of January. ADA observed little movement until January 3, when the price broke above the $0.2000 level, enabling ADA to initiate a bull rally.
The bulls faced resistance in crossing the $0.2250 level, but once ADA climbed above the level, Cardano price started a strong bullish rally as the price traded inside a narrow ascending channel. The channel carried the price to the $0.356 price level before the bearish pressure caused the upwards movement to stop.
Subsequently, the price declined to the $0.250 level before finding support to recover above the $0.300 level. Following the decline, ADA consolidated between the $0.3200 and the $0.2800 level until yesterday when the price initiated a bearish trend entering a descending channel that has caused the price to fall to the $0.2500 level.
ADA seems to have found support at the level as the buyers seem to be defending the price from falling below the $0.2500 level.
Technical indicators and what to expect from Litecoin price
Across the technical indicators, the MACD shows strong bearish pressure in the markets as the EMAs continue declining. However, the 26-period EMA seems to be catching up to the 12-EMA suggesting a declining bearish momentum in the markets. This also suggests that Cardano may observe a bullish reversal.
The RSI remains neutral but inclines towards the lower boundary suggesting a sharp downwards movement would make Cardano oversold. However, the indicator is at 35.09 at press time, suggesting that ADA has room for further downwards movement before the asset becomes oversold.
The Bollinger bands have left the squeeze, and the indicator is expanding, suggesting increasing price volatility for the Cardano price.
Across the daily frames, 13 of the 28 major technical indicators issue a buy signal, while only five indicators issue sell signals. Meanwhile, ten indicators remain neutral and do not indicate support towards either side.
Traders should expect the Cardano price to find support at the $0.250 level, with the buyers defending the level. The price can be expected to observe sideways movement at the level with the bulls initiating a bullish rally back towards the $0.3000 level.
Conversely, if the price falls below the $0.250 level, ADA may decline to the $0.200 mark before finding a strong support level.
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